1004MC Form

An Explanation of How DataMaster Calculates the 1004MC

FannieMae Guidelines – effective July 2010 (DataMaster Versions 4.52.003.0001 and Higher)

Current – 3 Months: The past 3 month period. For example, if the effective date is 7/9/2010 the period would be 4/10/2010 through 7/9/2010.

Prior 4 – 6 Months: The 3 month period of time between 6 months ago through 4 months ago. For example, if the effective date is 7/9/2010 the period would be 1/10/2010 through 4/9/2010.

Prior 7 – 12 Months: The 6 month period of time between 12 months ago through 7 months ago. For example, if the effective date is 7/9/2010 the period would be 7/10/2009 through 1/9/2010.

Total # of Comparable Sales: This is calculated by summing all of the sales that have happened at any point in the specified period. It includes only “closed” sales transactions.

Absorption Rate: The number from the “Total # of Comparable Sales” section divided by the time period in months.

Total # of Comparable Active Listings:  This number is calculated by taking only the properties that were “active” listings on the last day of the period. More specifically, these include only those properties that were still available to be shown to prospective buyers. Other properties such as expired, sold, pending sales, under contract etc are excluded from this calculation.

A difficult question arises concerning “contingent sales”. These are treated differently from one MLS to the next. Fannie Mae gave us the following guidance and instruction. “If contingent sales are still considered active listings then include them. If not, then don’t include them.” As the appraiser, you must reflect what is common and customary for your area.

DataMaster does NOT include “contingent sales”.

Months of Housing Supply: This is calculated by taking the “Total # of Comparable Active Listings” and dividing it by the “Absorption Rate” for the same specified period.

Median Comparable Sale Price: This is calculated by taking all of the sold properties for the specified period and finding the median (middle) sale price. If there are two middle values the median will be the two values averaged together.

Median Comparable Sales Days on Market: If the Days on Market data are available this will be calculated by getting the median Days on Market value for all sold properties for the specified period.

NOTE:

  • Some MLS’s only provide the DOM’s for the current listing contract.
  • Others provide CDOM (Cumulative DOM) which includes the number of days for all previous listing contracts for that property.
  • Some MLS’s provide both DOM and CDOM.
  • Some MLS’s have other descriptions.
  • Some do not provide DOM’s at all. In those cases, we calculate the DOM by comparing the original list date with the date you pulled the data from the MLS. This method DOES NOT include previous listings on the same property.

Median Comparable List Price: This is calculated by taking all of the end-of-period listings for the specified period and finding the median list price. If there are two middle values the median will be the two values averaged together.

Median Comparable Listings Days on Market: : If the Days on Market data are available this will be calculated by getting the median Days on Market value for all end-of-period listings for the specified period.

Median Sale-to-List Price Ratio: This is just the median value for all properties when they are sorted on their individual sp/lp ratio.

Example: Let’s say you have 3 properties

Property 1: lp 70,000; sp 70,000; sp/lp %100

Property 2: lp 200,000; sp 160,000; sp/lp %80

Property 3: lp 80,000; sp 40,000; sp/lp %50

 

Median Sale Price: 70,000 (the middle of 160, 70, and 40)

Median List Price: 80,000 (the middle of 200, 80, and 70)

Median SP/LP Ratio: %80 (the middle of %100, %80, and %50)

 

Seller Concessions Explanation: When seller concession information is available this section will include information about the trends of these concessions.

Foreclosure Trends: In many areas it is very difficult to accurately determine the distressed status of a listing. DataMaster makes every effort to accurately determine if a property is distressed. If the MLS has fields that specifically indicate a property is bank-owned, such as a short sale flag or REO flag, then DataMaster will use this to determine its distressed status. In many cases the only available indicators that a property is distressed is from the agent remarks or ownership information. DataMaster searches all available remarks (private and public) and ownership information for the following key words: REO, Bank Owned, Foreclosure, Short Sale, Bank Approval, Lender Approval, and Auction.

FannieMae Guidelines – March 2009 – June 2010 (DataMaster Versions prior to 4.52.003)

Current – 3 Months: The past 3 month period. If the effective date is 7/9/2010 the period would be 4/10/2010 through 7/9/2010.

Prior 4 – 6 Months: The 3 month period of time between 6 months ago through 4 months ago. If the effective date is 7/9/2010 the period would be 1/10/2010 through 4/9/2010.

Prior 7 – 12 Months: The 6 month period of time between 12 months ago through 7 months ago. If the effective date is 7/9/2010 the period would be 7/10/2009 through 1/9/2010.

Total # of Comparable Sales: This is calculated by summing all of the sales that have happened at any point in the specified period.

Absorption Rate: The number from the “Total # of Comparable Sales” section divided by the length of the period in months.

Total # of Comparable Active Listings: This is calculated by summing all of listings that have been listed at any point in the specified period. No matter what the current status is (expired, sold, active, etc…) it will be counted if it had been an active listing at any point during the specified period.

Months of Housing Supply: This is calculated by taking the “Total # of Comparable Active Listings” and dividing it by the “Absorption Rate” for the same specified period.

Median Comparable Sale Price: This is calculated by taking all of the sold properties for the specified period and finding the median (middle) sale price. If there are two middle values the median will be the two values averaged together.

Median Comparable Sales Days on Market: If the Days on Market data are available this will be calculated by getting the median Days on Market value for all sold properties for the specified period.

Median Comparable List Price: This is calculated by taking all of the listings for the specified period and finding the median list price. If there are two middle values the median will be the two values averaged together.

Median Comparable Listings Days on Market: If the Days on Market data are available this will be calculated by getting the median Days on Market value for all listings during the specified period.

Median Sale-to-List Price Ratio: This is just the median value for all properties when they are sorted on their individual sp/lp ratio.

Example: Let’s say you have 3 properties

Property 1: lp 70,000; sp 70,000; sp/lp %100

Property 2: lp 200,000; sp 160,000; sp/lp %80

Property 3: lp 80,000; sp 40,000; sp/lp %50

 

Median Sale Price: 70,000 (the middle of 160, 70, and 40)

Median List Price: 80,000 (the middle of 200, 80, and 70)

Median SP/LP Ratio: %80 (the middle of %100, %80, and %50)

 

Seller Concessions Explanation: When seller concession information is available to DataMaster this section will include some information about the trends of these concessions.

Foreclosure Trends: In many areas it is very difficult to accurately determine the foreclosure status of a listing. DataMaster makes every effort to accurately determine if a property is bank-owned or in foreclosure. If the MLS has fields that specifically indicate a property is bank-owned, such as a short sale flag or REO flag, then DataMaster will use this to determine its REO status. In many cases the only available indicators that a property is REO is from the agent remarks or ownership information. DataMaster searches all available remarks (private and public) and ownership information for the following key words: REO, Bank Owned, Foreclosure, Short Sale, Bank Approval, Lender Approval, and Auction.